(a)If the commissioner determines that a
person has engaged, is engaging, or is about to engage in an act,
practice, or course of business constituting a violation of this article or
a rule adopted or order issued under this article or that a person has
materially aided, is materially aiding, or is about to materially aid an
act, practice, or course of business constituting a violation of this
article or a rule adopted or order issued under this article, the
commissioner may:
(1)investigate and may issue, with or without a prior hearing,
orders and notices as the commissioner determines to be in the
public interest, including cease and desist orders, orders to show
cause, and notices. After notice and hearing, the commissioner
may enter an order of rescission, restitution, or disgorgemen
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(a) If the commissioner determines that a
person has engaged, is engaging, or is about to engage in an act,
practice, or course of business constituting a violation of this article or
a rule adopted or order issued under this article or that a person has
materially aided, is materially aiding, or is about to materially aid an
act, practice, or course of business constituting a violation of this
article or a rule adopted or order issued under this article, the
commissioner may:
(1) investigate and may issue, with or without a prior hearing,
orders and notices as the commissioner determines to be in the
public interest, including cease and desist orders, orders to show
cause, and notices. After notice and hearing, the commissioner
may enter an order of rescission, restitution, or disgorgement,
including interest at the legal rate of interest, directed to a person
who has violated this article or a rule or order under this article;
(2) issue an order denying, suspending, revoking, or conditioning
the exemptions for a broker-dealer under IC 23-19-4-1(b)(1)(D)
or IC 23-19-4-1(b)(1)(F) or an investment adviser under IC 23-19-4-3(b)(1)(C); or
(3) issue an order under IC 23-19-2-4.
(b) An order under subsection (a) is effective on the date of
issuance. Upon issuance of the order, the commissioner shall promptly
serve each person subject to the order with a copy of the order and a
notice that the order has been entered. The order must include a
statement whether the commissioner will seek a civil penalty or costs
of the investigation, a statement of the reasons for the order, and notice
that, within fifteen (15) days after receipt of a request in a record from
the person, the matter will be scheduled for a hearing. If a person
subject to the order does not request a hearing and none is ordered by
the commissioner within forty-five (45) days after the date of service
of the order, the order, which may include a civil penalty or costs of the
investigation if a civil penalty or costs were sought in the statement
accompanying the order, becomes final as to that person by operation
of law. If a hearing is requested or ordered, the commissioner, after
notice of and opportunity for hearing to each person subject to the
order, may modify or vacate the order or extend it until final
determination.
(c) If a hearing is requested or ordered under subsection (b), the
hearing must be held not later than fifteen (15) business days after
receipt if the original order issued by the commissioner was a summary
suspension, summary revocation, or denial of a license and not later
than forty-five (45) business days after receipt for all other orders. A
final order may not be issued unless the commissioner makes findings
of fact and conclusions of law in a record. The final order may make
final, vacate, or modify the order issued under subsection (a).
(d) In a final order under subsection (c), the commissioner may
impose a civil penalty up to ten thousand dollars ($10,000) per
violation. Penalties collected under this section shall be deposited in
the securities division enforcement account established under section
1 of this chapter.
(e) In a final order, the commissioner may charge the cost of an
investigation or proceeding for a violation of this article or a rule
adopted or order issued under this article.
(f) If a petition for judicial review of a final order is not filed in
accordance with section 9 of this chapter, the commissioner may file
a certified copy of the final order with the clerk of a court with
jurisdiction. The order so filed has the same effect as a judgment of the
court and may be recorded, enforced, or satisfied in the same manner
as a judgment of the court.
(g) If a person does not comply with an order under this section, the
commissioner may petition a court with jurisdiction to enforce the
order. The court may not require the commissioner to post a bond in an
action or proceeding under this section. If the court finds, after service
and opportunity for hearing, that the person was not in compliance with
the order, the court may adjudge the person in civil contempt of the
order. The court may impose a further civil penalty against the person
for contempt in an amount not greater than twenty thousand dollars
($20,000) for each violation and may grant any other relief the court
determines is just and proper in the circumstances.
(h) The commissioner shall send a certified copy of every final order
that suspends or revokes a person's registration under this article, or
that orders a person who is not registered under this article to cease and
desist from violating this article, to the insurance commissioner
appointed under IC 27-1-1-2. The insurance commissioner shall act in
accordance with IC 27-1-15.6-29.5.